After Roche/Genentech: Pharma's Focus on Efficiencies, Not Innovation

Roche's rationale for buying Genentech must out-argue the one big reason not to do the deal: theirs has been the most successful relationship in pharmaceutical history. Instead, Roche is betting that this unique relationship has already borne its best fruit. In an emerging world of payor constraints, biological me-toos and growing oncology marketing expenses, the costs of keeping Genentech independent -- manufacturing transfer prices, up-front fees and royalties, and most importantly, no ability to leverage its investment in the US marketplace -- are simply too high. Moreover, Roche is clearly not convinced that Genentech's productivity would have continued at the rates it has in the last decade. Roche's vision of the pharma future looks a lot more like the cost-constrained world CEO Schwan knew at Roche Diagnostics - where innovation was rare and rarely paid for; where extraordinary business acumen counted for more than outsized research capabilities.

As IN VIVO was going to press, Roche announced it was offering $43.7 billion for the 44% of Genentech Inc. it didn’t already own. [See Deal]

The question is why? Certainly, Roche’s earnings are slowing and buying the remainder of Genentech will allow it to consolidate...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By 

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By 

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By 

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo

AI In Health Delivery: Patients Most Confident When HCPs Are In Charge

 
• By 

Annual survey of patients and professionals shows how attitudes to health system transformation are evolving and what stakeholders are demanding as acceptance of AI tools accelerates.

Medtech Innovators Court London-Based Investors At BioWales 2025

 
• By 

BioWales in London 2025 showcased the efforts healthtech innovators are making to meet investors on their own turf, illustrating changing attitudes and evolving needs.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.